* Canadian dollar strengthens 0.3% against the greenback
* Toronto home sales fall nearly 13% in April from March
* Price of U.S. oil rises 1.1%
* Canadian 10-year yield increases 2.5 basis points to
1.548%
TORONTO, May 5 (Reuters) - The Canadian dollar gained ground
against its U.S. counterpart on Wednesday as oil prices rose and
economic data supported expectations for global economic
recovery, with the loonie approaching its strongest level in
over three years.
World shares advanced after data for April showing
euro zone business activity quickened and U.S. private payrolls
climbed.
Canada is a major exporter of commodities, including oil, so
the loonie tends to be sensitive to the outlook for the global
economy.
Oil prices rose for a third day as easing of lockdowns in
the United States and parts of Europe heralded a boost in fuel
demand in the summer season and offset concerns about the rise
of COVID-19 infections in India and Japan.
U.S. crude prices were up 1.1% at $66.44 a barrel,
while the Canadian dollar was trading 0.3% higher at 1.2271 to
the greenback, or 81.49 U.S. cents.
The currency traded in a range of 1.2266 to 1.2314. Last
Friday, it touched its strongest intraday level since February
2018 at 1.2262.
Home sales across Toronto, Canada's most populous city, fell
nearly 13% in April from March. That bucked the regular spring
trend, as demand began to ease after months of blistering
growth.
The Bank of Canada has feared that high housing prices could
result in stretched borrowing and lending, leaving some
households and financial institutions vulnerable to an economic
downtown.
Clues to the central bank's policy outlook could come from
Canada's April employment report, which is due for release on
Friday.
Canadian government bond yields were higher across the
curve, with the 10-year up 2.5 basis points at
1.548%.
(Reporting by Fergal Smith; Editing by Kirsten Donovan)
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